June Home Sales Highest in Two Years

Monday, July 27, 2015 | 7:42 pm

The California Association of Realtors® (C.A.R.), just released its June 2015 Sales and Price Report. And, it shows that statewide, the number of home sales in June 2015 reached its highest level in two years. Plus, it was the first double-digit increase since May of 2012. Locally, in the Los Angeles Metro market, the number of home sales increased 16.1% over last year, and 6.5% over May 2015. The median price of homes increased 7.4% over last year, and 1.6% over the prior month, to $447,180 in June 2015. The unsold inventory in the Los Angeles Metro area decreased slightly, from 4.0 months last year, to 3.6 months in June 2015, compared to 3.9 months in May of 2015.

“Home prices continue to improve but at a more moderate rate compared with the previous year,” said C.A.R. President Chris Kutzkey.

According to Leslie Appleton-Young, Vice President and Chief Economist of C.A.R., ““The housing market remained solid in June, as the economy continued to pick up steam following a lackluster first quarter. Overall, market fundamentals appear strong, and should provide some support for the market to stay above last year’s level in the upcoming quarter. Housing supply, however, is one variable that remains a concern and could have an adverse effect on the market, if the inventory constraints do not improve.”

What does this mean to you? For the short term, as long as inventory remains low, prices in our market area will continue to increase, and we will continue to experience multiple offers on well-priced properties. However, there will probably be continued pressure on the ability of first-time buyers to come into the market. Historically, that has affected the ability of trade-up buyers to sell their homes, and could put a crimp in market activity in the long run.

If you’re thinking about selling your home, now is a great time, because of the low inventory of homes for sale (less competition for selling your home), and the great prices sellers are getting for their homes.

If you’re thinking about buying a home, prices will probably continue to increase, and competition among buyers will remain stiff. So, it might be good time to get into the market, before prices climb even higher.

There are three very important things to do to be a successful buyer in today’s real estate market.

First, get yourself pre-approved or pre-qualified for a loan at the maximum price you can qualify for or are willing to spend. It is crucial that you work with a reputable lender who can get your loan funded on time.

Second, make sure your financial information is readily available. You’ll need your most recent bank or savings account statements showing that you have the funds to pay for your down payment and closing costs, plus about six months of “reserves” to cover your mortgage and property tax payments.

Third, find a really good, trustworthy Realtor to help you find the right home for you, and to help you successfully negotiate an offer.

Your agent should show you homes that are priced within or slightly higher than your budget (to allow for negotiating room). When she shows you property, she should not only point out the features of the home that may not be visible, but also point out the flaws that could cause you problems in the future. She should be a very good negotiator who helps you to structure a successful offer, and also continue to negotiate on your behalf throughout the inspection and escrow period. She should have great resources of lenders, home inspectors, and contractors to refer you to, to help you make the transaction as easy and successful as possible. And, she should work with you throughout the transaction, to make sure all the details are handled correctly and on time. Once escrow closes, and you own your new home, she should be readily available to help solve any problems that may come up in the future.

For more information, contact Carol Lollich, Broker, Concierge for Homes
Mobile: (626) 233-0624, email: homes@lollich.com; website Pasadena-homes.com.

For the full article from C.A.R., copy the website address: http://www.car.org/newsstand/newsreleases/2015releases/june2015sales/


blog comments powered by Disqus